Minutes of Corporate and Strategic Committee

1. Welcome/Apologies/Notices

The Chairman welcomed everyone to the meeting. There were no notices, nor apologies.

2. Conflict of Interest Declarations

There were no conflict of interest declarations.

3. Confirmation of Minutes of the Corporate and Strategic Committee Held on 9 November 2011

Resolution

Minutes of the Corporate and Strategic Committee held on Wednesday, 9 November 2011, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and accurate record.

von Dadelszen/Rose

CARRIED

4. Matters Arising From Minutes of the Corporate and Strategic Committee Held on Wednesday 9 November 2011

There were no matters arising from the minutes.

Action Items From Previous Corporate and Strategic Committee Meetings

Ms Lambert provided Councillors with an update on the status of the action items and sought Councillors’ indication as to whether they wished to invite Peter Winder to make a presentation in support of his Shared Services report. Councillors requested that Mr Winder be invited to make a presentation at a future Council meeting.

C&S2/12

Resolution

1. That the Committee receives the report “Action Items from Previous Corporate and Strategic Committee Meetings”.

Gilbertson/von Dadelszen

CARRIED

Call for General Business Items

a) Food Safety Bill (Rose)

b) Marine Reserve (Mohi)

c) Dr Maaka (Mohi)

d) Hearing (Scott)

Hawke's Bay Tourism Six Monthly Update

Ms Annie Dundas (General Manager) provided the Committee with an overview of the figures contained within the six monthly update report, as well as what’s planned in the immediate future. Mr Sam Orton (Director & Deputy Chairman), and Mr George Hickton (Chairman) provided clarification in relation to funding and where the organisation was heading.

C&S3/12

Resolution

1. That Council receives the report from Hawke’s Bay Tourism Limited for the six months ending 31 December 2011.

McGregor/Rose

CARRIED

A Study on Improving the Social and Economic Performance of Hawke's Bay

Mr Newman updated Councillors on that status of the Terms of Reference and discussions relating to the study. Concerns relating to the scope given to the consultant were raised in terms of the amount of work required and the amount of money available. It is envisaged that a consultant will be appointed within the next few weeks so that the study is able to be completed by

There was concern expressed at the perceived ‘loss’ of the environmental and local government structure elements Council had resolved to be included in the study.

The meeting adjourned at 10.35am and reconvened at 10.50am

An amendment to the Terms of Reference was proposed and agreed by the Committee; that being the addition of the words “in accordance with the responsible use of our natural resources” to the end of the last sentence of paragraph 1 on page 1 under the heading Terms of Reference.

It was reiterated that the study was intended to examine the social and economic performance of Hawke’s Bay and the part that local government might play in contributing to or inhibiting that performance, and not a study into the structure of Local Government itself.

C&S4/12

Resolutions

Councillor Rose moved an amendment to the resolutions, seconded by Councillor Scott; being the addition of:

3. Delegates to the chair and mayors, appointment of the lead consultant.

Rose/Scott

CARRIED

The amendment was carried and therefore become part of the substantive motion.

The Committee recommends that Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Adopts the terms of reference as amended, for a study on improving the social and economic performance of Hawke’s Bay.

3. Delegates to the chair and mayors, appointment of the lead consultant.

4. Obtains a budget estimate for the study from the lead consultant once appointed.

5. Agrees that funding for the balance of the 2011-12 financial year be drawn for the project provision for Local Government efficiency studies and that if required additional provision be made for the 2012-13 financial year.

McGregor/Remmerswaal

CARRIED

Public Transport Update

Ms Gilbertson updated the Committee with the latest statistics which reflect a 38% increase in patronage since 2009, and highlighted specific figures within the report.

C&S5/12

Resolution

1. That the Corporate and Strategic Committee receives the Public Transport Update.

von Dadelszen/Rose

CARRIED

11.

General Business

1.	Food Safety Bill It was suggested that staff of HBRC read through the Bill to see if there were any implications for the council.	Rose
2.	Marine Reserve Te Angiangi Reserve has been affected by land slipping onto the foreshore from above, where the woolshed	Mohi
3.	Dr Maaka Was injured and remains in hospital	Mohi
4.	Hearing Bridgeman application to build a seawall is being heard by a Joint HDC HBRC panel consisting of Councillor Scott, Richard Croad (Coastal Engineer) and Bill Walsley (Planner).	Scott

12.

Appointment of Independent Members of the Investment Company Transition Board of Directors

C&S6/12

Resolution

That Council excludes the public from this section of the meeting, being Agenda Item 12 Appointment of Independent Members of the Investment Company Transition Board of Directors with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being as follows:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Appointment of Independent Members of the Investment Company Transition Board of Directors	7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

McGregor/Dick

CARRIED

The meeting went into public excluded session at 11.40am and out of public excluded session at 12.25pm

The meeting adjourned at 12.30pm and reconvened at 1.00pm

10.

Apache Oil Exploration Project Briefing

Chairman Wilson welcomed everyone to the reconvened meeting. Mr Newman introduced Mr Alex Ferguson (Apache Canada) and Ms Alex Johansen (TAG Oil), and invited Bryce Lawrence and Iain Maxwell to brief the audience on Council’s regulatory functions in relation to oil and gas exploration processes.

Council’s primary function under the RMA is to ensure that any effects on the environment are mitigated, remedied or avoided and that the activities meet the rules and policies contained in the Regional Resource Management Plan. Through the resource consenting processes, the applicant is required to provide an Assessment of Environmental Effects and Council staff make a decision on whether the application will be publicly notified via a series of RMA ‘tests’.

Council currently in a ‘pre application’ phase with Tag Apache to allow the engagement and ‘fact finding’ between the two parties. As part of the process, staff from HBRC will be visiting the regulatory staff in British Columbia to up-skill ahead of any consenting processes. It was confirmed that Exploration Permits (rights) are granted by Central Government. Exploration permits are not permits allowing production and therefore TAG Apache would be required to go through a further process of applying for the consents and permits needed should exploration prove successful and commercially viable.

Mr Ferguson explained TAG Apache’s phased programme of exploration spanning 3.5 years, which is in Phase 1 currently. Subsequent phases are dependent on the findings of the previous phase. Phase 3 is when the project would enter planning for production. Phase 1 is when siesmic testing (sonar) is carried out – looking at the area’s geology and where exploratory wells might be best sited. Currently, phase 1 exploration is taking place in the Porangahau area. Phase 2 includes drilling a ‘mimic’ production well to conduct further seismic analysis.

Phase 1 (current – 18 months)

· 2 seismic programs - 4 exploration (test) wells - Decision by Year End 2012

· Determine presence or absence of oil resources

· Test properties & responsiveness of reservoir

· If subsurface highly fractured, fracking may not be required during this phase – 50/50. If required, may use 50-60 m³ water for the process

· Ongoing engagement with those directly affected, including communication of test results (you will know when we know), and create a forum for ongoing community engagement

· Local employment and services with a cautionary message relating to economic opportunities

Phase 2 (if Phase 1 results satisfactory)

· Review phase 1 performance

· Continued and ongoing community engagement and engagement with those directly affected – begin dialogue re future - Environmental, social, cultural & economic challenges/opportunities

· Test the potential commercial feasibility of the reservoir

Phase 3 (if Phase 2 results satisfactory)

· Review phase 2 performance

· Continued and ongoing community engagement and engagement with those directly affected – Planning & actions for future - Environmental, social, cultural & economic challenges/opportunities

· Local employment & training - Local business, service sector opportunities

· Test the understanding of the extent of the reservoir

It was suggested that the public interested in the issues would like more information as things progress, rather than awaiting a possible outcome prior to receiving information about the processes and what’s involved and being considered; and that it could be advantageous for the company to hold further public forums.

It has been suggested that a moratorium be placed on the process of fracking while the commissioner for the environment conducts an investigation into whether it is an acceptable process or poses too great an environmental risk.

C&S7/12

Resolution

1. That the Corporate and Strategic Committee receives the verbal report on the Apache Oil Exploration project from Mr Alex Ferguson and Alexandra Johansen.

von Dadelszen/Rose

CARRIED

Closure:

There being no further business the Chairman declared the meeting closed at 2.20pm on Wednesday, 25 January 2012.

Signed as a true and correct record.

DATE: ................................................ CHAIRMAN: ...............................................